One of the keys to investing wisely is to apply Proverbs 21:5, “Steady plodding brings prosperity, hasty speculation brings poverty” (emphasis added).
Many people violate this steady plodding principle in a number of ways:
- Going heavily into debt to invest
- Investing in things they don’t really understand in the hopes of making a good return. If you can’t easily explain the investment to your spouse or a friend, don’t make the investment.
- Having to make a quick decision. The promoter often will tell you, “This deal won’t last long, it’s a once in a lifetime opportunity!” A successful investor once told me, when people are trying to sell him an investment it’s always a once in a life time opportunity.
If you avoid using a lot of debt to invest and you take your time and do your homework, might you miss out on some rare opportunities? Sure, but more often than not, you’ll miss out on rare money losing opportunities. So, take your time and do your homework. And don’t forget to get wise counsel from godly experienced people. This is huge. Proverbs 12:15 says, “The way of a fool is right in his own eyes, but a wise person listens to others.”
Warmly in Christ,
Checkout www.SoundMindInvesting.com to learn more about a biblical perspective of investing.